#CEXvsDEX101 Centralized Exchanges (CEXs) act as intermediaries that manage funds and trades, offering convenience and liquidity but requiring trust and often identity verification. Decentralized Exchanges (DEXs) facilitate direct peer-to-peer trades, allowing users to retain control of their funds with more privacy, though they require more technical expertise and come with potential liquidity and speed challenges. Many users utilize both types of exchanges for different aspects of trading.